U.S. Alcohol Consumption Plummets to Historic Low in 2025

Alcohol consumption in the U.S. has hit a record low, according to a 2025 Gallup poll. Only 54% of respondents now report drinking, down from previous years. The shift reflects broader changes in habits, affecting bars and restaurants across the country.

Damon Wise opened Pineapple Express in Montclair, New Jersey, with a business model relying heavily on alcohol sales. Initially, the restaurant's revenue split stood at 40% food and 60% drinks. But over two years, that ratio flipped—first to 50:50, then to 70:30 in favour of food.

Wise struggled to reverse the trend. Efforts to boost happy hour attendance and catering orders failed as customers drank less. By January, he closed the restaurant, citing the shifting revenue balance as a key factor. The decline in drinking aligns with national patterns. Beer retail sales dropped by nearly $20 billion, while bar and restaurant alcohol sales fell sharply in 2025. Demand moved toward off-premise channels like e-commerce and supermarkets, which saw strong growth. On-premise venues, including bars, faced significant losses. Meanwhile, premium segments like Scotch whisky still project growth through 2032. Experts attribute the broader decline to rising health awareness, generational changes, and the influence of GLP-1 medications, which can reduce alcohol cravings.

The drop in alcohol sales has reshaped the hospitality industry, forcing some businesses to adapt or close. Bars and restaurants now face a market where food often outweighs drink revenue. For now, the trend shows no signs of reversing.